ICICI Responds To Congress’ Madhabi Buch Salary Allegations; “Wishy-Washy Response,” Says Jairam Ramesh

ICICI Bank has responded to allegations made by the Indian National Congress (INC) regarding the salary payments to Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI). Congress had accused Buch of receiving substantial payments from ICICI Bank during her tenure at SEBI, which they claim violated conflict of interest rules.

In its statement, ICICI Bank clarified that Buch has not received any salary or Employee Stock Ownership Plans (ESOPs) from the bank or its subsidiaries since her retirement in 2013, except for her retiral benefits. The bank emphasized that all payments made to Buch post-retirement were related to her earlier employment, including vested ESOPs, and that taxes on such perquisite income were duly deducted as per Income Tax rules.

“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms. Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from October 31, 2013. During her employment with the ICICI Group, she received compensation in the form of salary, retiral benefits, bonus and ESOPs, in line with applicable policies. Under the Bank’s ESOP rules, the ESOPs vest over the next few years from the date of allotment. As per rules existing at the time of her ESOP grant, employees including retired employees had the choice to exercise their ESOPs anytime up to a period of 10 years from the date of vesting,” ICICI statement said.

The controversy erupted after Congress leader Pawan Khera alleged that Buch had received Rs 16.80 crore from ICICI Bank between 2017 and 2024, which was five times her SEBI salary. Khera also questioned whether Buch had a conflict of interest while overseeing probes into ICICI Bank during her time at SEBI. According to Khera, Buch’s actions violated Section 5 of SEBI’s Code on Conflict of Interests, which prohibits employees from benefiting from external organisations.

Responding to ICICI’s statement, Congress’ general secretary in charge of communications, Jairam Ramesh, dismissed the bank’s explanation, calling it a “wishy-washy response.” He hinted that the Congress party would release a more detailed rebuttal the following morning.

The allegations against Buch also raised broader concerns, with Congress pointing fingers at Prime Minister Modi, questioning whether he was aware of the SEBI chairperson’s alleged conflict of interest. Congress raised doubts about who might be protecting Buch, considering her appointment was approved by the Appointments Committee of the Cabinet, led by PM Modi and Union Minister Amit Shah.

These accusations come amidst a broader set of claims against Buch, including her alleged involvement in offshore investments tied to the Adani Group scandal. Despite calls for her resignation, Buch has denied all wrongdoing.

The situation is likely to escalate as the Congress party promises further action and clarification on the matter.